In the certificate scenario you are purchasing the lien on the property. This will be evidenced by a certificate which states that you have purchased a lien. Now as a lienholder you may be required to foreclose out your lien to enforce your rights and collect on the properties' equity.

On the other hand in the deed state you have purchased a deed which has been qualified by a right of redemption. Once this right of redemption passes you need not foreclose out your deed. You deed will merely become a deed absolute.

I would suggest that in getting started you contact the tax collector's office. You WILL NOT get a list of the liens on the property. This will be part of your research. The liens left after the auction will depend on your state statute and to some extend federal law. For example, if there is a federal tax lien you can be assured it will probably survive.

Costs for deed transfer and recording will typically be seperate from the auction purchase price. This will however be minimal.

I am working on a course which will cover the state of New Jersey and you will be able to find it on REIDEPOT by mid August.

I would contact a real estate attorney in your area and ask them these questions as well.
Warmest Regards,

Darius M. Barazandeh, JD/MBA

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